Comments on: Snail Mail Payouts http://www.showmedaily.org/2009/08/snail-mail-payouts.html Advancing liberty with responsibility by promoting market solutions for Missouri public policy Thu, 24 May 2012 00:36:33 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Caitlin Hartsell http://www.showmedaily.org/2009/08/snail-mail-payouts.html/comment-page-1#comment-3410 Caitlin Hartsell Mon, 31 Aug 2009 18:12:10 +0000 http://www.showmedaily.org/?p=6485#comment-3410 Actually, Vicki, those so-called "profitable activities" were actually very unprofitable for the USPS... that is why USPS allowed FedEx and UPS to participate in them in the first place. (The Post Office was taking a loss on every package it shipped.) But UPS and FedEx are far more efficient and therefore are able to turn a profit on the same activity that USPS was losing money on. USPS doesn't need to make a profit to stay in business. If it actually could do parcel delivery more efficiently than FedEx or UPS (which it has proven it can't) then wouldn't it have the advantage, since it needs no profit margin? But the Post Office is just another example of how government-run institutions aren't able to truly compete or be efficient in a market. It would be no loss to lose the USPS and its silly regulations that drive up the cost of letters and mail. Actually, Vicki, those so-called “profitable activities” were actually very unprofitable for the USPS… that is why USPS allowed FedEx and UPS to participate in them in the first place. (The Post Office was taking a loss on every package it shipped.) But UPS and FedEx are far more efficient and therefore are able to turn a profit on the same activity that USPS was losing money on.

USPS doesn’t need to make a profit to stay in business. If it actually could do parcel delivery more efficiently than FedEx or UPS (which it has proven it can’t) then wouldn’t it have the advantage, since it needs no profit margin? But the Post Office is just another example of how government-run institutions aren’t able to truly compete or be efficient in a market. It would be no loss to lose the USPS and its silly regulations that drive up the cost of letters and mail.

]]> By: Vicki Sauter http://www.showmedaily.org/2009/08/snail-mail-payouts.html/comment-page-1#comment-3409 Vicki Sauter Mon, 31 Aug 2009 17:56:04 +0000 http://www.showmedaily.org/?p=6485#comment-3409 Isn't a big problem of the USPS that the government already allowed competition when it opened up competition for the package component of the service? FedEx and UPS have taken most of the PROFITABLE activities away from the post office, and left the unprofitable components. I am not convinced anyone wants what is left of their business -- in the 21st century. Without the profitable components or economies of scale, it is difficult for the post office to make a profit. That is not to say that they couldn't be more efficient and effective -- but that I doubt they can do enough to make up for the decreased demand for their service. Isn’t a big problem of the USPS that the government already allowed competition when it opened up competition for the package component of the service? FedEx and UPS have taken most of the PROFITABLE activities away from the post office, and left the unprofitable components. I am not convinced anyone wants what is left of their business — in the 21st century. Without the profitable components or economies of scale, it is difficult for the post office to make a profit. That is not to say that they couldn’t be more efficient and effective — but that I doubt they can do enough to make up for the decreased demand for their service.

]]> By: David Stokes http://www.showmedaily.org/2009/08/snail-mail-payouts.html/comment-page-1#comment-3395 David Stokes Sat, 29 Aug 2009 22:30:33 +0000 http://www.showmedaily.org/?p=6485#comment-3395 I meant "good thing or bad thing", obviously. I said that because I really do see it as inevitable, no matter what anyone does. But, yes, its a good thing. I meant “good thing or bad thing”, obviously. I said that because I really do see it as inevitable, no matter what anyone does. But, yes, its a good thing.

]]> By: Eric D. Dixon http://www.showmedaily.org/2009/08/snail-mail-payouts.html/comment-page-1#comment-3393 Eric D. Dixon Sat, 29 Aug 2009 04:49:27 +0000 http://www.showmedaily.org/?p=6485#comment-3393 Definitely a good thing. Definitely a good thing.

]]> By: David Stokes http://www.showmedaily.org/2009/08/snail-mail-payouts.html/comment-page-1#comment-3389 David Stokes Fri, 28 Aug 2009 19:45:32 +0000 http://www.showmedaily.org/?p=6485#comment-3389 I see the decline of the USPS as almost inevitable, no matter what they do. Not a good thing or a good thing, just a statement of fact (although I clearly see it as more of the latter). Eventually, almost everything done via the mail will be done online, and FedEx and UPS will replace the USPS for the very small percent of mailings that will continue to be written and sent by hand for reasons of tradition, like thank-you notes. I see the decline of the USPS as almost inevitable, no matter what they do. Not a good thing or a good thing, just a statement of fact (although I clearly see it as more of the latter). Eventually, almost everything done via the mail will be done online, and FedEx and UPS will replace the USPS for the very small percent of mailings that will continue to be written and sent by hand for reasons of tradition, like thank-you notes.

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